Farm Lending Activity Increased by 20% in the Last Year

July 16, 2024

Delaney Sexton
Contributing Editor

Farm Lending Activity Increased by 20% in the Last Year

In the second quarter of 2024, the volume of new operating loans for farmers increased by 20% from the year before. Boosted farm lending activity is believed to be connected to the larger size of loans at small and mid-sized lenders. The recent rise in demand for farm loans follows years of weaker activity. Outstanding non-real estate loan balances at commercial banks have also seen a jump, but outstanding balances and new volumes of operating debt are still falling short of historical averages.

Source:
Federal Reserve Bank of Kansas City’s Survey of Terms of Lending to Farmers